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Petropavlovsk FY gold production slips despite improved Q4 performance

By Iain Gilbert

Date: Thursday 27 Jan 2022

Petropavlovsk FY gold production slips despite improved Q4 performance

(Sharecast News) - Gold miner Petropavlovsk said on Thursday that full-year gold production had contracted in 2021 despite witnessing improved production in the fourth quarter.

Petropavlovsk said full-year total gold production was 449,800 ounces, down from 548,100 in 2020 and in line with the midpoint of its 2021 guidance range of 430,000-470,000 ounces.

For the fourth quarter, however, total gold production was 143,100 ounces, a 26% increase versus the fourth quarter of 2020.

Own-mined gold production during the quarter was 130,400 ounces, a 53% increase year-on-year, with substantially higher production across all of the group's mines, while third-party concentrate gold production declined 55% to 12,700 ounces on lower volumes as POX processing capacity was used to treat concentrate from own-mined ore.

Gold sales totalled 130,100 ounces in the fourth quarter, up from 113,100 a year ago, and 437,300 ounces in the full year, down from 546,500 ounces twelve months earlier.

Looking forward, total gold production for 2022 was expected to be in the range of 380,000-420,000 ounces, while the outlook for total production is expected to be similar in 2023, but with a higher proportion of gold from own-mined ore, and to improve in subsequent years.

Chief executive Denis Alexandrov said: "Despite a challenging operational environment, Petropavlovsk achieved its 2021 production guidance and closed out the year with a strong fourth-quarter performance.

"With the Pioneer flotation plant operating at full capacity and Malomir outperforming, we were able to fill our POX hub with more concentrate from our own mines, reducing our reliance on lower-margin third-party concentrate while maximising the plant's potential."

As of 0900 GMT, Petropavlovsk shares were up 0.87% at 15.09p.


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